Popular housing affordability formulas are useful starting points, not permission slips to borrow as much as a lender allows. Housing affordability rules of thumb can guide decisions but should not substitute for a household-specific budget. Mortgage payments, property taxes, insurance, maintenance and other debts all matter.
The article's subject highlights the importance of looking beyond an advertised rate or monthly payment. Taxes, insurance, transaction expenses and long-term ownership costs can materially change the result. Affordability ultimately depends on what remains after the complete cost of housing is paid.
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